Bid to have liquidator of private Carlyle Institute removed

The High Court has been asked to set aside the appointment of a voluntary liquidator to the company that operated private third-level college The Carlyle Institute.

The Dublin-based college offered English language and business courses to mainly non-EU students. It closed its doors and ceased operations in early April.

Late last month, Mr Justice Paul Gilligan appointed insolvency practitioner Declan de Lacy of PKF O’Connor Leddy & Holmes as provisional liquidator of The Carlyle Institute Ltd.

The judge made the appointment, on an ex-parte basis, after being informed many of the college’s former students have concerns about the conduct of the company.

One of the college’s students, Ching-Hsiu Huang, with an address in Killiney, Co Dublin petitioned the court for Mr De Lacy’s appointment.

She is one of 200 students who paid fees to the college. In an affidavit, she said she is owed €1,500 in respect of fees paid to the company.

On Thursday, the High Court was informed that on April 24th last, the day after Mr de Lacy’s appointment, the company proceeded with a creditors’ meeting.

Following a vote of creditors at the meeting, Desmond Murrows and Neil Hughes of Hughes Blake were purportedly appointed as liquidators of the company.

Ex-parte application

Counsel for Ms Huang, Robert McGarr BL, returned to court and following an ex-parte application secured permission from Mr Justice Gilligan to seek an order to have decisions taken at the creditors’ meeting, including the appointment of the liquidators, set aside.

In a sworn statement to the court, Ms Huang’s solicitor Peter Louis Boyle said the creditors’ meeting took place in circumstances where the company and its directors were aware of the appointment of a provisional liquidator.

At the meeting, it is claimed the votes of Ms Huang and other student creditors were disallowed.

Previously, the High Court heard Ms Huang’s application to have Mr de Lacy appointed as provisional liquidator was supported by other students of the college, who are owed €237,000, and the Irish Council of International Students (ICOS).

The students said they did not want anyone nominated by the company to act as liquidator.

The judge adjourned the matter to a date later this month.